Wockhardt rose 1.1% to Rs 565.35 at 14:20 IST on BSE after the company and its subsidiaries settled with Teva and its affiliate a commercial litigation in the High Court, London.
The announcement was made after market hours yesterday, 22 June 2017.Meanwhile, the S&P BSE Sensex was down 105.19 points, or 0.34% to 31,185.55. The S&P BSE Mid-Cap index was down 131.78 points, or 0.89% to 14,631.29.
On the BSE, 2.85 lakh shares were traded in the counter so far, compared with average daily volumes of 2.53 lakh shares in the past one quarter. The stock had hit a high of Rs 577 and a low of Rs 559 so far during the day. The stock had hit a 52-week high of Rs 1,129 on 21 July 2016. The stock had hit a 52-week low of Rs 555 yesterday, 26 June 2017.
The stock had dropped 12.18% in five sessions to settle at Rs 559.20 yesterday, 22 June 2017, from a close of Rs 636.80 on 15 June 2017.
The stock had underperformed the market over the past one month till 22 June 2017, falling 12.76% compared with Sensex's 2.35% gains. The scrip had also underperformed the market in past one quarter, dropping 23.37% as against Sensex's 7.28% rise. The scrip had also underperformed the market in past one year, dropping 36.89% as against Sensex's 16.91% rise.
The mid-cap company has equity capital of Rs 55.28 crore. Face value per share is Rs 5.
Wockhardt said that the company and its two subsidiaries, Wockhardt UK Holdings and CP Pharmaceuticals (CP), have settled an ongoing commercial litigation before the High Court in London, UK in relation to a supply contract for a drug named Trisenox.
The dispute between the parties was in respect of the price charged by CP to its counterparty to the contract, Cephalon Inc, (Cephalon) an affiliate of Teva Pharmaceuticals USA Inc. (Teva). The proceedings commenced in September 2015.
Under the settlement between the parties, CP has agreed to waive its claim for the outstanding trade receivable of GBP 20 million and accordingly dropped its counterclaim for the said amount and further paid a sum of GBP 23 million to Teva and Cephalon by way of full and final settlement of Teva's claims.
The high court has accepted the settlement between the parties and a consent order was issued on 21 June 2017. Pursuant to the settlement the ongoing litigation stands closed and all claims are dismissed.
Wockhardt reported consolidated net loss of Rs 174.72 crore in Q4 March 2017, sharply higher than net loss of Rs 5.38 crore in Q4 March 2016. Wockhardt's consolidated net sales fell 14.5% to Rs 863.53 crore in Q4 March 2017 over Q4 March 2016.
Wockhardt is a global pharmaceutical and biotech company with presence in USA, UK, Ireland, Mexico, Russia and many other countries.
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